SOCIO-DEMOGRAPHIC VARIABLES FORMING A PERCEPTION OF CORPORATE IMAGE BRAND IN THE CROATIAN BANKING INDUSTRY
Valentina Pirić
Maja Martinović
Mirna Koričan Lajtman
Zagreb School of Economics and Management, Jordanovac 110, 10000 Zagreb, Croatia
DOI: https://doi.org/10.31410/Balkans.JETSS.2020.3.2.96-111
Valentina Pirić
Maja Martinović
Mirna Koričan Lajtman
Zagreb School of Economics and Management, Jordanovac 110, 10000 Zagreb, Croatia
DOI: https://doi.org/10.31410/Balkans.JETSS.2020.3.2.96-111
Balkans Journal of Emerging Trends in Social Sciences, (2020) , Vol 3, No 2
ISSN: 2620-164X
ISSN: 2620-164X
Abstract: The banking industry is currently at the forefront of the development of technology-based service delivery, and the survival of banks depends on their ability to deal with the environmental challenges. Due to these challenges, many banks are faced with an identity crisis and increased customer migration rates that negatively affect the levels of business profitability. Croatian market ads additionally challenge almost 30 banks currently operating with customers that are extremely price sensitive. Research shows that in the banking sector, a favorable image is considered a critical aspect of a company’s ability to maintain its market position, as the image has been related to core attributes of organizational success.
This paper studies the dimensions of corporate image, focusing on the corporate image concept in the Croatian banking industry as perceived by consumers and its possible impact on their choice of banks. The purpose of this study is to give an insight and provide a deeper understanding of how the banks, by developing a strong and consistent corporate image using corporate communication activities, ensure a long-term source of sustainable competitive advantage and influence on customers’ end choice.
A study was carried out in Croatia during 2019 using 250 respondents-consumers who used different types of banking services in different banks. Series of ANOVA analysis shows how the perception of the corporate image of the bank and its influence on the customer’s choice of the bank, bank loyalty and the quality of the bank services varies depending on some demographic and social variables. Results pose implications for bank communications and service positioning within customer segments. This research raises ideas for future studies as well.
Keywords: Corporate image, Consumer choice, Corporate branding, Corporate identity, Croatian banking industry.
JEL Classifications M31 · D12
REFERENCES
Aaker, D.A. (2003). Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage,
and Clarity. The Free Press, New York, NY.
Argenti P.I.A., Druckenmiller, B. (2004). Reputation and the corporate brand. Corp. Reputation
Review. 6(4), pp. 368-374
Argenti, P.A., Forman, J. (2002). The Power of Corporate Communication, McGraw-Hill, New
York
Barich H., Kotler, P. (1991). A Framework for image management, Sloan Management Review,
Winter, pp. 94-104
Bernstein, D. (1986). Company Image and Reality: A Critique of Corporate Communications,
Holt, Rinehart & Winston, Eastbourne.
Bird, M., Channon, C., Ehrenberg, A.S.C. (1970). Brand Image and Brand Usage, Journal of Marketing
Research, 7, pp. 307-314
Birkigt, K., Stadler, M.M. (1986). Corporate Identity, Grundlagen, Funktionen und Beispielen,
Verlag, Moderne Industrie: Landsberg an Lech.
Bivainiene, L., Šliburyte, L., (2008). The Brand Image As An Element Of Brand Equity. Social
Research, Nr. 2(12), pp. 22-31
Belen del Rio, A., Vazquez, R., Iglesias, V. (2001). The effects of brand associations on consumer
response, Journal of Consumer Marketing, Vol. 18, Bo. 5, pp. 410-425
Biehal, G.J., Sheinin, D.A. (1998). Managing the brand in the corporate advertising environment:
decision-making framework for brand managers, J. Advertising, 27(2), pp. 99-110
Blauw, E. (1994). Het Corporate Image, vierde geheel herziene druk, De Viergang: Amsterdam.
(4th rev. Edn. First published 1986)
Bloemer, J., de Ruyter, K., Peeters, P. (1998). Investigating drivers of bank loyalty: the complex
relationship between image, service quality and satisfaction, International Journal of Bank
Marketing, 16(7), pp. 276-286
Bravo, R., Montaner, T., Pina, J.M. (2010). Corporate brand image in retail banking: Development
and validation of a scale, The Service Industries Journal, pp. 1199-1218
Bravo, R., Montaner, T., Pina, J.M. (2009). The role of bank image for customers versus non-customers,
International Journal of Bank Marketing, Vol. 27, Issue:4, pp. 315-334
Bravo, R., Montaner, T., Pina, J.M. (2012). Corporate brand image of financial institutions: a consumer
approach, Journal of Product and Brand Management, Vol. 21, Issue: 4, pp. 232-245.
Brinkerhof, J.D.F. (1990). Corporate image als concurrentiewappen, Holland Harvard Review,
Vo. 22, pp. 46-54
Carter, D.E. (1982). Designing Corporate Identity Programs for Small Corporations, Art Direction
Company, New York
Croatian Banking Association. (2019), http://www.hub.hr/hr/popis-svih-banaka-koje-djeluju-
u-republici-hrvatskoj
Croatian Economy and Banking Sector. (2017), https://thebanks.eu/countries/Croatia
Croatian National Bank. (2017). https://www.hnb.hr
Del Rio, B., Vazquez, R., Iglesias, V. (2001). The effects of brand associations on consumer response.
Journal of Consumer Marketing, Vol. 18, No. 5, pp. 410-425
Dowling, G.R. (1986). Managing Your Corporate Image, Industrial Marketing Management,
15(2): pp. 109-115
Dowling, G.R. (1994). Corporate Reputations, Kogan-Page, London
Farquar, P.H. (1990). Managing Brand Equity, Journal of Advertising Research, No. 6, pp. RC7-
RC12
Filip, A., Tatu, Ch.I. (2012). Corporate image in Romanian retail banking market, The Romanian
Economic Journal, Year XV, No. 46 bis, pp. 63-78
Fombrun, Ch. (1996). Reputation: Realizing Value from the Corporate Image. Boston: Harvard
Business School, pp. 5
Gray, E., Balmer, J.M.T. (1998). Managing corporate image and corporate reputation. Long Range
Planning, Vol. 31, No. 5, pp. 695-702
Gronholdt, L., Martensen, A., Kristensen, K. (2000). The Relationship between Customer Satisfaction
and Loyalty: Cross-Industry Differences, Total Quality Management, 11, pp. 509-
514
Hoeffler, S. Keller, K.L. (2003). The marketing advantages of strong brands. Journal of Brand
Management, August, Vol. 10, No. 6, pp. 421-445
Jahanbakhshian, P. (2013). Internet Marketing: Path-to-Profitability in the Banking Industry, International
Journal of Research in Management, Issue 3, Vol. 2 (March), pp. 120-132
Keller, K.L. (1998). Strategic Brand Management. Prentice-Hall. Englewood Cliffs, NY.
Keller, K.L. (1993). Conceptualizing, measuring and managing customer based brand equity.
Journal of Marketing, 57, pp. 1-22
Keller, K.L. (2000). Building and Managing Corporate Brand Equity, in Schultz, M., Hatch, M.J
and Larsen, M.H, The Expressive Organization, Oxford: Oxford University Press, pp. 118
Keller, K.L., Aaaker, D.A., (1992). The effects of sequential introduction of brand extensions,
Journal of Marketing Research, 29(May), pp. 35-50
Keller, K.L., Aaker, D.A. (1998). Corporate-level marketing: The impact of credibility on a company’s
brand extensions, Corporate Reputation Review, 1(August), pp. 356-378
Keller, K.L., Lehmann, D.R., (2005). Brands and branding: Research findings and future priorities,
Tuck School of Business, Hanover
Kennedy, S.H. (1977). Nurturing corporate images: Total communication or ego trip?, European
Journal of Marketing, 11(1), pp. 120-64
Khvtisiashvili, I. (2012). How Does Corporate Image Affects the Competitive Advantage of Georgian
Banking Segment? Journal of Business, 1(1), pp. 35-44
Kitchen, Ph.J., Schultz, D.E. (2001). Raising the Corporate Umbrella: Corporate Communications
in 21st century. Palgrave, New York
Knecht, J., (1986). Zin en onzin over images en reclame, Toespraak tijdens corporate image/identity
symposium, georganiseerd door ESPRIT/MOTIVACTION; Amsterdam
Kouchesfahani, M.M., Sajedi, A., Abdoolahzade, M., Sheikhhossini, A. (2013). The Importance
of Marketing in the Bank, Interdisciplinary Journal of Contemporary Research in Business,
Vol. 5, No. 1, pp. 1082-1088
Korgaonkar, P.K., Lund, D., Prince, B. (1985). A structural equations approach toward examination
of store attitude and store patronage behavior, Journal of Retailing, Summer, 61, pp.
39-60
Lassar, W., Mittal, B., Sharma, A. (1995) Measuring Customer-Based Brand Equity, Journal of
Consumer Marketing, Vol. 12, pp. 11-19
MacDonad, E., Sharp, B. (2003). Management Perceptions of the Importance of Brand Awareness
as an Indication of Advertising Effectiveness. Marketing Bulletin, Vol. 14, Article 2, pp.
1-11
Martineau, P. (1957). Motivation in Advertising, Journal of Marketing Research, February, pp.
35-40
Moise, D., Gregorescu, B., Zguta, D. (2012). The Use of Event Marketing Management Strategies,
Procedia – Social and Behavioral Sciences, Volume 46, pp. 5409-5413
Nokandeh, B.F., Poorhabib, A., Seyedi, S. H, Niknafs, M. (2013). Marketing Research Services of
Banks and their Impact on Perception of Service Users, Interdisciplinary Journal of Contemporary
Research in Business, Vol. 4, No. 12, pp. 472-477
Oh, H. (2000). The Effect of Brand Class, Brand Awareness, and Price on Customer Value and
Behavioral Intentions. Journal of Hospitality & Tourism Research, Vol. 24, No. 2, May, pp.
136-162
Oliver, R.L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction
Decisions, Journal of Marketing, 17, pp. 460-469
Osei, N.Y.A. et.al. (2014). Corporate image of the Ghanaian banking industry: do the perceptions
of employees differ from customers? African Journal of Hospitality, Tourism and Leisure,
Vol. 3(2), pp. 1-23
Poiesz, T.B.C. (1988). The image concept: It’s place in consumer psychology and its potential for
other psychological areas, paper presented at the 14th International Congress of Psychology,
Sydney, Australia
Reichheld, F.F. (1993). Loyalty-based management. Harvard Business Review, March-April, pp.
64-73
Richardson, B.A., Robinson, C.G. (2007). The impact of internal marketing on customer service
in retail bank, International Journal of Bank Marketing, Vol. 4, No. 5, pp. 3-30.
Roy, D., Banerjee, S. (2007). Caring strategy for integration of brand identity with brand image.
International Journal of Commerce and Management, 17(1/2), pp. 140-148
Sallam, M. A. (2016). The Impact of Brand Image and Corporate Branding on Consumer’s Choice:
The Role of Brand Equity, International Journal of Marketing Studies, Vol. 8, No. 1, pp.
98-106
Schultz, D.E., Kitchen, P.J. (2000). Communicating Globally: An Integrated Marketing Approach,
Chicago, NTC Business Books, and London, Macmillan – now Palgrave.
Slater, S.F. (1997). Developing customer value-based theory of the firm. Journal of the Academy
of Marketing Science, 25(2), pp. 162-167
van Riel, C.B.M. (1995). Principles of Corporate Communication. Prentice Hall, Harlow, England,
pp. 74
Villas-Boas, J.M., (2004). Consumer learning, brand loyalty, and competition, Marketing Sci.,
23(1), pp. 134-145
Zhang, Y. (2015). The Impact of Brand Image on Consumer Behavior: A Literature Review, Open
Journal of Business and Management, 3, pp. 58-62
This paper studies the dimensions of corporate image, focusing on the corporate image concept in the Croatian banking industry as perceived by consumers and its possible impact on their choice of banks. The purpose of this study is to give an insight and provide a deeper understanding of how the banks, by developing a strong and consistent corporate image using corporate communication activities, ensure a long-term source of sustainable competitive advantage and influence on customers’ end choice.
A study was carried out in Croatia during 2019 using 250 respondents-consumers who used different types of banking services in different banks. Series of ANOVA analysis shows how the perception of the corporate image of the bank and its influence on the customer’s choice of the bank, bank loyalty and the quality of the bank services varies depending on some demographic and social variables. Results pose implications for bank communications and service positioning within customer segments. This research raises ideas for future studies as well.
Keywords: Corporate image, Consumer choice, Corporate branding, Corporate identity, Croatian banking industry.
JEL Classifications M31 · D12
REFERENCES
Aaker, D.A. (2003). Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage,
and Clarity. The Free Press, New York, NY.
Argenti P.I.A., Druckenmiller, B. (2004). Reputation and the corporate brand. Corp. Reputation
Review. 6(4), pp. 368-374
Argenti, P.A., Forman, J. (2002). The Power of Corporate Communication, McGraw-Hill, New
York
Barich H., Kotler, P. (1991). A Framework for image management, Sloan Management Review,
Winter, pp. 94-104
Bernstein, D. (1986). Company Image and Reality: A Critique of Corporate Communications,
Holt, Rinehart & Winston, Eastbourne.
Bird, M., Channon, C., Ehrenberg, A.S.C. (1970). Brand Image and Brand Usage, Journal of Marketing
Research, 7, pp. 307-314
Birkigt, K., Stadler, M.M. (1986). Corporate Identity, Grundlagen, Funktionen und Beispielen,
Verlag, Moderne Industrie: Landsberg an Lech.
Bivainiene, L., Šliburyte, L., (2008). The Brand Image As An Element Of Brand Equity. Social
Research, Nr. 2(12), pp. 22-31
Belen del Rio, A., Vazquez, R., Iglesias, V. (2001). The effects of brand associations on consumer
response, Journal of Consumer Marketing, Vol. 18, Bo. 5, pp. 410-425
Biehal, G.J., Sheinin, D.A. (1998). Managing the brand in the corporate advertising environment:
decision-making framework for brand managers, J. Advertising, 27(2), pp. 99-110
Blauw, E. (1994). Het Corporate Image, vierde geheel herziene druk, De Viergang: Amsterdam.
(4th rev. Edn. First published 1986)
Bloemer, J., de Ruyter, K., Peeters, P. (1998). Investigating drivers of bank loyalty: the complex
relationship between image, service quality and satisfaction, International Journal of Bank
Marketing, 16(7), pp. 276-286
Bravo, R., Montaner, T., Pina, J.M. (2010). Corporate brand image in retail banking: Development
and validation of a scale, The Service Industries Journal, pp. 1199-1218
Bravo, R., Montaner, T., Pina, J.M. (2009). The role of bank image for customers versus non-customers,
International Journal of Bank Marketing, Vol. 27, Issue:4, pp. 315-334
Bravo, R., Montaner, T., Pina, J.M. (2012). Corporate brand image of financial institutions: a consumer
approach, Journal of Product and Brand Management, Vol. 21, Issue: 4, pp. 232-245.
Brinkerhof, J.D.F. (1990). Corporate image als concurrentiewappen, Holland Harvard Review,
Vo. 22, pp. 46-54
Carter, D.E. (1982). Designing Corporate Identity Programs for Small Corporations, Art Direction
Company, New York
Croatian Banking Association. (2019), http://www.hub.hr/hr/popis-svih-banaka-koje-djeluju-
u-republici-hrvatskoj
Croatian Economy and Banking Sector. (2017), https://thebanks.eu/countries/Croatia
Croatian National Bank. (2017). https://www.hnb.hr
Del Rio, B., Vazquez, R., Iglesias, V. (2001). The effects of brand associations on consumer response.
Journal of Consumer Marketing, Vol. 18, No. 5, pp. 410-425
Dowling, G.R. (1986). Managing Your Corporate Image, Industrial Marketing Management,
15(2): pp. 109-115
Dowling, G.R. (1994). Corporate Reputations, Kogan-Page, London
Farquar, P.H. (1990). Managing Brand Equity, Journal of Advertising Research, No. 6, pp. RC7-
RC12
Filip, A., Tatu, Ch.I. (2012). Corporate image in Romanian retail banking market, The Romanian
Economic Journal, Year XV, No. 46 bis, pp. 63-78
Fombrun, Ch. (1996). Reputation: Realizing Value from the Corporate Image. Boston: Harvard
Business School, pp. 5
Gray, E., Balmer, J.M.T. (1998). Managing corporate image and corporate reputation. Long Range
Planning, Vol. 31, No. 5, pp. 695-702
Gronholdt, L., Martensen, A., Kristensen, K. (2000). The Relationship between Customer Satisfaction
and Loyalty: Cross-Industry Differences, Total Quality Management, 11, pp. 509-
514
Hoeffler, S. Keller, K.L. (2003). The marketing advantages of strong brands. Journal of Brand
Management, August, Vol. 10, No. 6, pp. 421-445
Jahanbakhshian, P. (2013). Internet Marketing: Path-to-Profitability in the Banking Industry, International
Journal of Research in Management, Issue 3, Vol. 2 (March), pp. 120-132
Keller, K.L. (1998). Strategic Brand Management. Prentice-Hall. Englewood Cliffs, NY.
Keller, K.L. (1993). Conceptualizing, measuring and managing customer based brand equity.
Journal of Marketing, 57, pp. 1-22
Keller, K.L. (2000). Building and Managing Corporate Brand Equity, in Schultz, M., Hatch, M.J
and Larsen, M.H, The Expressive Organization, Oxford: Oxford University Press, pp. 118
Keller, K.L., Aaaker, D.A., (1992). The effects of sequential introduction of brand extensions,
Journal of Marketing Research, 29(May), pp. 35-50
Keller, K.L., Aaker, D.A. (1998). Corporate-level marketing: The impact of credibility on a company’s
brand extensions, Corporate Reputation Review, 1(August), pp. 356-378
Keller, K.L., Lehmann, D.R., (2005). Brands and branding: Research findings and future priorities,
Tuck School of Business, Hanover
Kennedy, S.H. (1977). Nurturing corporate images: Total communication or ego trip?, European
Journal of Marketing, 11(1), pp. 120-64
Khvtisiashvili, I. (2012). How Does Corporate Image Affects the Competitive Advantage of Georgian
Banking Segment? Journal of Business, 1(1), pp. 35-44
Kitchen, Ph.J., Schultz, D.E. (2001). Raising the Corporate Umbrella: Corporate Communications
in 21st century. Palgrave, New York
Knecht, J., (1986). Zin en onzin over images en reclame, Toespraak tijdens corporate image/identity
symposium, georganiseerd door ESPRIT/MOTIVACTION; Amsterdam
Kouchesfahani, M.M., Sajedi, A., Abdoolahzade, M., Sheikhhossini, A. (2013). The Importance
of Marketing in the Bank, Interdisciplinary Journal of Contemporary Research in Business,
Vol. 5, No. 1, pp. 1082-1088
Korgaonkar, P.K., Lund, D., Prince, B. (1985). A structural equations approach toward examination
of store attitude and store patronage behavior, Journal of Retailing, Summer, 61, pp.
39-60
Lassar, W., Mittal, B., Sharma, A. (1995) Measuring Customer-Based Brand Equity, Journal of
Consumer Marketing, Vol. 12, pp. 11-19
MacDonad, E., Sharp, B. (2003). Management Perceptions of the Importance of Brand Awareness
as an Indication of Advertising Effectiveness. Marketing Bulletin, Vol. 14, Article 2, pp.
1-11
Martineau, P. (1957). Motivation in Advertising, Journal of Marketing Research, February, pp.
35-40
Moise, D., Gregorescu, B., Zguta, D. (2012). The Use of Event Marketing Management Strategies,
Procedia – Social and Behavioral Sciences, Volume 46, pp. 5409-5413
Nokandeh, B.F., Poorhabib, A., Seyedi, S. H, Niknafs, M. (2013). Marketing Research Services of
Banks and their Impact on Perception of Service Users, Interdisciplinary Journal of Contemporary
Research in Business, Vol. 4, No. 12, pp. 472-477
Oh, H. (2000). The Effect of Brand Class, Brand Awareness, and Price on Customer Value and
Behavioral Intentions. Journal of Hospitality & Tourism Research, Vol. 24, No. 2, May, pp.
136-162
Oliver, R.L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction
Decisions, Journal of Marketing, 17, pp. 460-469
Osei, N.Y.A. et.al. (2014). Corporate image of the Ghanaian banking industry: do the perceptions
of employees differ from customers? African Journal of Hospitality, Tourism and Leisure,
Vol. 3(2), pp. 1-23
Poiesz, T.B.C. (1988). The image concept: It’s place in consumer psychology and its potential for
other psychological areas, paper presented at the 14th International Congress of Psychology,
Sydney, Australia
Reichheld, F.F. (1993). Loyalty-based management. Harvard Business Review, March-April, pp.
64-73
Richardson, B.A., Robinson, C.G. (2007). The impact of internal marketing on customer service
in retail bank, International Journal of Bank Marketing, Vol. 4, No. 5, pp. 3-30.
Roy, D., Banerjee, S. (2007). Caring strategy for integration of brand identity with brand image.
International Journal of Commerce and Management, 17(1/2), pp. 140-148
Sallam, M. A. (2016). The Impact of Brand Image and Corporate Branding on Consumer’s Choice:
The Role of Brand Equity, International Journal of Marketing Studies, Vol. 8, No. 1, pp.
98-106
Schultz, D.E., Kitchen, P.J. (2000). Communicating Globally: An Integrated Marketing Approach,
Chicago, NTC Business Books, and London, Macmillan – now Palgrave.
Slater, S.F. (1997). Developing customer value-based theory of the firm. Journal of the Academy
of Marketing Science, 25(2), pp. 162-167
van Riel, C.B.M. (1995). Principles of Corporate Communication. Prentice Hall, Harlow, England,
pp. 74
Villas-Boas, J.M., (2004). Consumer learning, brand loyalty, and competition, Marketing Sci.,
23(1), pp. 134-145
Zhang, Y. (2015). The Impact of Brand Image on Consumer Behavior: A Literature Review, Open
Journal of Business and Management, 3, pp. 58-62
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